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Change Acceleration Process (CAP) The Key to Change Effective <

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2 Change Acceleration Process (CAP) The Key to Change Effective <

3 Growth: IB’s, CECOR, Lean, Customer Centric, Execution Work-Out™ / Town Meetings: Empowerment, action – Expert-Driven Decision-Making, Action Work-Outs™, Customized Work-Outs™ Productivity / Best Practices: Benchmarking External Organizations, Sharing Best Practices Process Improvement: Process-mapping, re-engineering, Bullet Train Approach Change Acceleration Process (CAP): Increase success and accelerate change Key Strategic Initiatives: QMI*, NPI*, OTR*, SP*, Productivity, Globalization Make Customers Winners: GE Tool-Kit Six Sigma Quality: Productivity, Span, Data-Driven Decision-Making Digitization: Sell, Buy, Make using Technological Tools ACFC (At the Customer For the Customer): Faster, Better, Closer to the Customer Imagination at Work: Imagine, Solve, Build, Lead * New Product Introduction, Quick Market Intelligence, Order to Remittance, Supplier Partnership 1989 Change Culture: A Continuing Journey Using Change as a Strategic and Competitive Advantage Optimizing Change Effectiveness Building a Culture that Drives Change Lean Six Sigma Speed & Quality 2005+

4 Change Research 100% of all changes evaluated as “Successful” had a good technical solution or approach Over 98% of all changes evaluated as “Unsuccessful” also had a good technical solution or approach What is the differentiating factor between success and failure?

5 …From Your Change Experiences Elements of Successful Change: __________________________________________ Elements of Unsuccessful Change: __________________________________________

6 Effective Change Equation Q x A = E Q= Qualitative/Technical Solution A= Acceptance/Engagement E= Overall Effectiveness Q x A = E Q= Qualitative/Technical Solution A= Acceptance/Engagement E= Overall Effectiveness

7 FacilitativeLeadership Technical Strategy Cultural, Organizational Strategy Change initiative focused on customer needs (target) The Challenge = Do It With Speed! Lessons Learned: 2 Components to Any Change

8 CAP: The Basics Provides a ‘Pilot’s Checklist’ for change leadership A flexible non-linear model used throughout a change process Applies strategic thinking to the influencing of others Contains tools to help change teams identify ways to achieve behavioral change

9 The GE CAP Model CURRENT STATE TRANSITION STATE IMPROVED STATE Leading Change Monitoring Progress Mobilizing Commitment Shaping a Vision Creating a Shared Need Making Change Last Systems and Structures Future State

10 CAP: A Model for Change Leading Change Having a sponsor/champion and team members who demonstrate visible, active, public commitment and support of the change. Creating A Shared Need The reason to change, whether driven by threat or opportunity, is instilled within the organization and widely shared through data, demonstration or demand. The need for change must exceed its resistance. Shaping A VisionThe desired outcome of change is clear, legitimate, widely understood and shared; the vision is shaped in behavioral terms. Mobilizing Commitment There is a strong commitment from constituents to invest in the change, make it work, and demand and receive management attention; Constituents agree to change their own actions and behaviors to support the change. Making Change Last Once change is started, it endures, and learnings are transferred throughout the organization. Change is integrated with other key initiatives; early wins are encouraged to build momentum for the change. Monitoring Progress Progress is real; benchmarks set and realized; indicators established to guarantee accountability. Changing Systems And Structures Making sure that the management practices (Staffing, Development, Rewards, Measures, Communication, Organizational Design and Information Technology Systems) are used to complement and reinforce change

11 Setting Up for Success “Off to a Good Start”

12 Why is this Important? SU A "good start" is essential to long-term success Even straightforward projects must be "scoped" to ensure attention is focused on essential elements & deliverables Effective teams are formed through deliberate actions, starting with clarification of roles, responsibilities and expectations Time Invested up-front Pays Rich Rewards ‘Down-Stream’ Go Slow To Go Fast!

13 What is the Outcome? SU Clear roles, responsibilities and expectations for all parties (Sponsor, Team Leader, Team Members, CAP Coach, Others) A well-defined scope of work for the project that all parties understand and are committed to achieving An effective project execution structure and process

14 Setting Up for Success: Tools SU Project Definition SCOPE: Timing Organizations Involved Processes Involved Levels Involved GOALS: Results / Target for Project Measurements of Success ROLES: What is Their Role? Who Should be on Project Team? Project Definition Tools Bounding Tools: GRPI Includes / Excludes Process Focus (SIPOC / COPIS) In the Frame / Out of the Frame Alignment Test: 15 words Critical Success Factors Significance Test: On the Screen

15 In the Frame / Out of the Frame Flip Charts Draw a large square "picture frame" on a flip chart (or use tape on a wall) and use this metaphor to help the team identify what falls inside the picture of their project and what falls out. This may be in terms of type and extent of end results, people impacted, time frame, product lines, sites, etc. 15-Word Flip Chart Each team member is given a flip chart page and marker. They must write, in 15 words or less, the project definition. Post all and check for agreement. Double check all fuzzy words by circling them and asking "What does it look like?" or "How will we know it when we have it?". PROJECT DEFINITION PROJECT DEFINITION PROJECT DEFINITION Project Scoping Tools SU In & Out of the Frame Used For: Creating a visual picture of the elements in “Scope” (frame) and out of “Scope” for the project 15-Word Flip Chart Used For: – Developing a Project – Definition Statement

16 Leading Change CURRENT STATE TRANSITION STATE IMPROVED STATE Leading Change Systems and Structures Monitoring Progress Mobilizing Commitment Shaping a Vision Creating a Shared Need Making Change Last

17 Why is this important? LC Strong, committed leadership is critical to accelerating change at all levels. Leadership impacts all other change elements. Change Leadership is not a part-time activity.

18 What is the outcome? LC Visible, active and public commitment/support. Willingness to take personal initiative and challenge the status quo. High levels of attention to the project through the time, passion and focus given to the project by leaders at all levels. Leaders actively modeling CAP concepts, language and tools. Successful change initiatives require strong, committed Leadership throughout the entire project life-cycle

19 ChangeSkills FOCUS / AGENDA Enroll Others Facilitative Leadership Skills Win/Win Time x Focus/ Agenda x Energy/ Passion = Attention Leading Change Model LC ENERGY / PASSION Personal involvement Is "known for... " TIME Planning Behavior: “Walk the talk”

20 1. Identify 4-5 things you feel very strongly about (at home or work). 2. Check your calendar for the last 2-3 months to see what % of your time is spent on those things you say are important to you 1. Identify 4-5 things you feel very strongly about (at home or work). 2. Check your calendar for the last 2-3 months to see what % of your time is spent on those things you say are important to you Change Acceleration Process Self-Assessment Leads change Creates a shared need Shapes a vision Mobilizes commitment Makes change last Monitors progress Changes systems & structures Leadership Assessment Tools: LC Calendar Test (Time Audit) Used For: Stimulating thinking and team discussion about the degree of attention & commitment change leaders are modeling. CAP Self-Assessment Used For: Assessing current capacity to show specific competencies in each of the seven core CAP processes.

21 Creating a Shared Need CURRENT STATE TRANSITION STATE IMPROVED STATE Leading Change Systems and Structures Monitoring Progress Mobilizing Commitment Shaping a Vision Creating a Shared Need Making Change Last

22 Forces any resistance or apathy to be addressed head-on. Validates why the project is important and critical to do. Builds the momentum needed to get the change initiative communicated and launched. Why is this Important? CSN

23 What is the Outcome? CSN Awareness of the dissatisfaction with the current state. A shared recognition, by both the team and key stakeholders, of the need and logic for change. The ability to frame and communicate the need for change as a combination of threats and opportunities. Creating a Shared Need produces the ‘urgency’ to build momentum for acceptance of the change initiative

24 Short Term Long Term Threat If we don’t make this change Opportunity if we do make this change Types of Proof Examples Data/ Facts:  Numbers / trends / statistics  Graphs / Financials  Benchmark / competitive data Demonstrate:  Finding Examples  Best Practices  Visiting other Organizations / Panels/ Pilots/ Testimonials Demand:  Dynamic Leadership (Setting High Standards/ Accountability)  Customers / Suppliers / Competition (Int. / Ext.) Creating a Shared Need Tools: CSN Threat / Opportunity Matrix Used For: Framing the need for change as a combination of threat & opportunity over the short and long term Three D’s Matrix Used For: – Building your case for change with evidence using data, demonstration & demand – Answers the question: “Can I prove it?”

25 Shaping a Vision CURRENT STATE TRANSITION STATE IMPROVED STATE Leading Change Systems and Structures Monitoring Progress Mobilizing Commitment Shaping a Vision Creating a Shared Need Making Change Last

26 Why is this important? SV Visions paint a picture that appeals to the “head and heart” and answers the question, “Where are we heading?” A clear statement about the future situation helps gain genuine commitment An understandable vision helps establish the milestones to monitor progress and change systems & structures

27 What is the outcome? SV A clear statement about the outcomes of the change A view of the future state that is: – Customer focused – Not just one person’s dream – Challenging – Evolving, not static – Behavioral and actionable – Easy to understand Visions provide Direction and Motivation for Change

28 1. Individually jot down key phrases that capture the essence of why the team exists. 2. Collect and collate into vision statement. 3. "Test" on customers, vendors, employees. 4. Modify as necessary. 1. Individually jot down key phrases that capture the essence of why the team exists. 2. Collect and collate into vision statement. 3. "Test" on customers, vendors, employees. 4. Modify as necessary. 1. Imagine a point in the future when the project has been very successful. 2. Find words to describe what you would see, hear, feel as you observe key stakeholders functioning in the new, changed state. 3. Collate, debate, reach consensus on your vision statement, "test" on others & modify 1. Imagine a point in the future when the project has been very successful. 2. Find words to describe what you would see, hear, feel as you observe key stakeholders functioning in the new, changed state. 3. Collate, debate, reach consensus on your vision statement, "test" on others & modify Shared Visions come from collective efforts that reflect individual perspectives Shaping a Vision Tools: SV Key Phrases Exercise Used For: Involving all team members and capturing individual perspectives Backward Imaging Exercise Used For: Helping team members think about the future they are working to create

29 Vision _________________________ Behaviors More ofLess of Vision _________________________ Behaviors More ofLess of Focusing Vision on Behaviors: SV Bull's Eye Chart Exercise Used For: Developing a Vision that is stated in actionable, behavioral terms More of/Less of Exercise Used For: Clarifying what the team expects from the new state in behavioral terms Vision Mindset Behavior Making a Vision Actionable Stating the Vision in actionable, behavioral terms helps the team gain commitment and identify sources of resistance

30 Elevator Speech Worksheet: SV 1. A “reality check” to ensure that team members see the project the same way. 2. To ensure that the team members spread a unified consistent message. "Here's what our project is about…” (Charter, Project Definition Tools) "Here's why it's important to do…” (Shared Need Tools) "Here's what success will look like …” (Shaping a Vision Tools +Milestones) "Here's what we need from you…” (Responsibilities, Commitments, Project Plans) "Here's what you can count on from me …” (Commitments, Action, Follow-up) (Output may change by stakeholder – one size does not fit all)

31 CURRENT STATE TRANSITION STATE IMPROVED STATE Leading Change Systems and Structures Monitoring Progress Mobilizing Commitment Shaping a Vision Creating a Shared Need Making Change Last Mobilizing Commitment

32 Why is this Important? MC Understanding the key stakeholders whose support and commitment will “make or break” the change effort. Key difference between success and failure.

33 What is the Outcome? MC Coalition of committed stakeholders. Identification of potential resistance and a strategy to overcome it. Mobilizing the Commitment of Key Stakeholders is Essential to the Success of the Change

34 Sources of Resistance Definition Causes of Resistance ExamplesRating Technical Political Cultural NamesStrongly Against Moderately Against NeutralModerately Supportive Strongly Supportive Stakeholder Analysis for Change People resist or support change for a variety of reasons. Mobilizing Commitment Tools: MC Stakeholder Analysis For Change Used For: Identifying stakeholders and their current level of commitment to the change initiative Technical-Political-Cultural Analysis Used For: Identifying, labeling and understanding sources of resistance

35 More of Less of Influencing Strategy Threat vs. Opp. 3D Matrix DDDDDD TPC Analysis TPCTPC Stakeholder Analysis / Visioning Vision Mindset Behavior Elevator Speech CAP Toolkit: MC

36 Systems and Structures CURRENT STATE TRANSITION STATE IMPROVED STATE Leading Change Systems and Structures Monitoring Progress Mobilizing Commitment Shaping a Vision Creating a Shared Need Making Change Last

37 Why is this Important? CSS Successful change often involves significant realignment and leveraging of the way we organize, communicate, measure, train, develop, reward, compensate, promote and other systems within the organization. Desired new behaviors (More of …Less of …) are reinforced through consistent attention to organizational Systems & Structures.

38 What is the Outcome? CSS Identification and utilization of key Systems & Structures that must be addressed to sustain project success. Utilization of Systems & Structures Best Practices. Alignment of Systems & Structures with desired behaviors. Identifying and re-aligning key Systems & Structures are necessary for successful, long-lasting change

39 Factors to Consider: CSS Staffing (Acquiring/placing talent) Development (Building competence/capability) Measures (Tracking performance) Rewards (Recognizing/rewarding desired behavior) Communication (Using information to build and sustain momentum) Organization Design (Organizing to support the change initiative) IT Systems (Utilizing IT technology to enable changes to be successful and sustained) Resource Allocation (Adjusting or planning for financial and other resources to support the change project)

40 Time Degree of Difficulty Which Systems & Structures Most Impact the New Behaviors? Identify the Key Stakeholder(s) of that S&S. What’s Missing? Identify Characteristics of New Systems & Structures. Determine Systems & Structures to Remove or Build. Identify Who to Engage and Develop Influence Strategy. 2. Current Systems & Structures Assessment 3. Creating future Systems & Structures What about the current S&S is Helping or Hindering us from achieving the desired state behaviors? Develop Influence Strategy/ Action plan. 1. Identify Key Systems & Structures HelpingHindering Actions Vision Mindset Behavior Three Step Alignment Process CSS

41 Channel Announce the CAP Project Clarify the Vision Begin to Mobilize Commitment Begin to Monitor Progress Changing Systems & Structures Written: Newsletter Bulletin Board V.P. Memo etc. Spoken: One-on-many All employees meeting Weekly staff meeting Operating managers meeting Etc. Spoken: One -on-one Symbolic: Offsite conference Press conference etc. Communication Planning Matrix: CSS Used For: – Communication Strategy (various Channels) Indicate those that are suitable for: – Providing Information – Persuading – Empowering Include: – Audience – Who – When – Where Used For: – Communication Strategy (various Channels) Indicate those that are suitable for: – Providing Information – Persuading – Empowering Include: – Audience – Who – When – Where

42 Making Change Last CURRENT STATE TRANSITION STATE IMPROVED STATE Leading Change Systems and Structures Monitoring Progress Mobilizing Commitment Shaping a Vision Creating a Shared Need Making Change Last

43 Why is this Important? MCL We often spend most available time on the launch of an initiative rather than its institutionalization Every change initiative competes for time, resources and attention To ensure that the new behaviors will not revert back to the old habits

44 What is the Outcome? MCL Consistent, visible, tangible reinforcement of the change initiative Integration of new initiative becomes the way we work Changes to Systems and Structures enable the new behavior that supports the Vision Launching a Change is just the beginning. It must become the Way of Life

45 Monitoring Progress CURRENT STATE TRANSITION STATE IMPROVED STATE Leading Change Systems and Structures Monitoring Progress Mobilizing Commitment Shaping a Vision Creating a Shared Need Making Change Last

46 Why is this Important ? MP An accurate measure of the CAP project provides focus, direction & momentum throughout the change process. Corrective action can only occur if you know you're off track. Monitoring Progress enhances your ability to reward key events and milestones.

47 What is the Outcome ? MP Clarity and agreement on what the “acceptance” strategy looks like in measurable & observable terms. Baseline data & milestone results of the change process tracked and widely communicated. Increasing momentum as people see progress and results being realized. Measuring & tracking progress along the CAP elements demands ongoing attention by the team

48 Effective Change Equation Q x A = E Q= Qualitative/Technical Solution A= Acceptance/Engagement E= Overall Effectiveness Q x A = E Q= Qualitative/Technical Solution A= Acceptance/Engagement E= Overall Effectiveness


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